Undercover sting targets Richmond Medicaid Office

RICHMOND (WWBT) - Multiple layers of Virginia's government are taking a close look at undercover video, shot by an independent filmmaker.

The video appears to show, a Richmond Medicaid worker helping a Russian drug smuggler, get around declaring his substantial wealth.

Governor Bob McDonnell, Attorney General Ken Cuccinelli, Virginia State Police and the City of Richmond are all involved in an investigation. They are trying to determine if what filmmaker James O'Keefe uncovered, is part of a much bigger problem.

It was a situation designed to be ridiculous.

"I went in there intending to shock the people with the most outrageous scenario possible," said O'Keefe, whose non-profit "Veritas Group" works to root out government corruption.

And the situation he created was outrageous indeed. It features a Russian drug smuggler, driving an $800 thousand dollar sports car, sporting a fake accent.

"As far as declaring asset, I just had question," said the actor, played by Spencer Meads, in broken English.

He is asking to get his father and sister on the federal Medicaid roles.

In the video, Meads admits to having considerable wealth, but the Richmond Medicaid workers gives him a step by step process to beat the system.

"But we won't get in trouble for like running the drug business and the illegal prostitution?" Meads can be heard saying. To which the worker replies, "No just leave that off the application."

O'Keefe believes the video speaks for itself.

"I do think it is disconcerting when government employees are out there telling you how to mislead the government," he said.

The City of Richmond has already taken action.

The worker in the video is a city employee, and CAO Byron Marshall said that "At the departmental level, personnel actions have been taken and will remain in effect until this investigation is complete."

That investigation is being led by Cuccinelli, and Governor McDonnell is involved as well, proof that this sting is more than just a practical joke.

James O'Keefe', last hidden camera investigation led to the non-profit organization ACORN to lose their federal funding.

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